The Spatial Spillover Effects of Environmental Regulation on China’s Industrial Green Growth Performance

Xiping Wang and Moyang Li
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Xiping Wang: Department of Economics and Management, North China Electric Power University, No. 619, Yonghua North Street, Baoding 071003, China
Moyang Li: Department of Economics and Management, North China Electric Power University, No. 619, Yonghua North Street, Baoding 071003, China

Energies, 2019, vol. 12, issue 2, 1-13

Abstract: This study investigated the spatial spillover effects of environmental regulation (ER) on industrial green growth performance ( IGGP ) in China. Firstly, a parametric stochastic frontier analysis (SFA) was estimated to measure IGGP using the data of China’s 30 provincial industry sectors during 2000–2014. Then, considering the space–time characteristics in IGGP , the spatial spillover effects of three types of ER, namely, administrative environmental regulation (AER), market-based environmental regulation (MER), and voluntary environmental regulation (VER), on IGGP was examined by employing spatial Durbin model (SDM). The main findings are: (1) the IGGP is low but shows a trend of continuous improvement and there is a significant disparity and spatial autocorrelations amongst regions; (2) the spillover effects of the three types of ER are different, specifically, the spillover effects of AER are significant negative, while the effects of MER and VER are both significant positive. The difference between the latter two is that the positive spillover effect of MER on IGGP is so large to outperform the negative direct effect, while the effect of VER is very minor. Based on these findings, relevant policy suggestions are presented to balance industrial economic and environmental protection in order to promote IGGP .

Keywords: industrial green growth performance; environmental regulation; spatial spillover; spatial Durbin model (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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